UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-22311
Schwab Strategic Trust –Schwab Ariel ESG ETF and Schwab Crypto Thematic ETF
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California 94105
(Address of principal executive offices) (Zip code)
Omar Aguilar
Schwab Strategic Trust – Schwab Ariel ESG ETF and Schwab Crypto Thematic ETF
211 Main Street, San Francisco, California 94105
(Name and address of agent for service)
Registrant’s telephone number, including area code: (415) 636-7000
Date of fiscal year end: March 31
Date of reporting period: September 30, 2023
Item 1: Report(s) to Shareholders.
![(CHARLES SCHWAB ASSET MANAGMENT LOGO)](https://capedge.com/proxy/N-CSRS/0001193125-23-286328/g396937img648784051.jpg)
THIS FUND IS DIFFERENT FROM TRADITIONAL ETFs |
Traditional ETFs tell the public what assets they hold each day. This fund will not. This may create additional risks for your investment. For example: |
• You may have to pay more money to trade the fund’s shares. This fund will provide less information to traders, who tend to charge more for trades when they have less information. |
• The price you pay to buy fund shares on an exchange may not match the value of the fund’s portfolio. The same is true when you sell shares. These price differences may be greater for this fund compared to other ETFs because it provides less information to traders. |
• These additional risks may be even greater in bad or uncertain market conditions. |
• The ETF will publish on its website each day a “Proxy Portfolio” designed to help trading in shares of the ETF. While the Proxy Portfolio includes some of the ETF’s holdings, it is not the ETF’s actual portfolio. |
The differences between this fund and other ETFs may also have advantages. By keeping certain information about the fund secret, this fund may face less risk that other traders can predict or copy its investment strategy. This may improve the fund’s performance. If other traders are able to copy or predict the fund’s investment strategy, however, this may hurt the fund’s performance. |
For additional information regarding the unique attributes and risks of the fund, see Proxy Portfolio Risk, Premium/Discount Risk, Trading Halt Risk, Authorized Participant Concentration Risk, Tracking Error Risk and Shares of the Fund May Trade at Prices Other Than NAV in the Principal Risks and Proxy Portfolio and Proxy Overlap sections of the prospectus and/or the Statement of Additional Information. These risks are also discussed in the Financial Notes of this report. |
Total Returns for the 6 Months Ended September 30, 2023 | |
Schwab Ariel ESG ETF (Ticker Symbol: SAEF) | |
Market Price Return1 | -3.86% |
NAV Return1 | -3.73% |
Russell 2500TM Index | 0.19% |
ETF Category: Morningstar Mid-Cap Blend2 | 0.53% |
Performance Details | pages 3-4 |
Fund and Inception Date | 6 Months | 1 Year | Since Inception* |
Fund: Schwab Ariel ESG ETF (11/16/21) | |||
Market Price Return2 | -3.86% | 13.96% | -9.83% |
NAV Return2 | -3.73% | 14.28% | -9.86% |
Russell 2500TM Index | 0.19% | 11.28% | -10.71% |
ETF Category: Morningstar Mid-Cap Blend3 | 0.53% | 14.02% | N/A |
Fund Expense Ratio4: 0.59% |
Number of Holdings | 62 |
Weighted Average Market Cap (millions) | $14,403 |
Price/Earnings Ratio (P/E) | 17.6 |
Price/Book Ratio (P/B) | 2.0 |
Portfolio Turnover Rate | 6% 1,2 |
![](https://capedge.com/proxy/N-CSRS/0001193125-23-286328/g396937img998313152.jpg)
![](https://capedge.com/proxy/N-CSRS/0001193125-23-286328/g396937imgc2b01ac13.jpg)
EXPENSE RATIO (ANNUALIZED) 1 | BEGINNING ACCOUNT VALUE AT 4/1/23 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 9/30/23 | EXPENSES PAID DURING PERIOD 4/1/23-9/30/23 2 | |
Schwab Ariel ESG ETF | ||||
Actual Return | 0.59% | $1,000.00 | $962.70 | $2.89 |
Hypothetical 5% Return | 0.59% | $1,000.00 | $1,022.05 | $2.98 |
1 | Based on the most recent six-month expense ratio. |
2 | Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 183 days in the period, and divided by the 366 days in the fiscal year. |
4/1/23– 9/30/23* | 4/1/22– 3/31/23 | 11/16/211– 3/31/22 | ||||
Per-Share Data | ||||||
Net asset value at beginning of period | $21.21 | $22.84 | $25.00 | |||
Income (loss) from investment operations: | ||||||
Net investment income (loss)2 | 0.06 | 0.14 | 0.05 | |||
Net realized and unrealized gains (losses) | (0.85 ) | (1.65 ) | (2.16 ) | |||
Total from investment operations | (0.79 ) | (1.51 ) | (2.11 ) | |||
Less distributions: | ||||||
Distributions from net investment income | (0.06 ) | (0.12 ) | (0.05 ) | |||
Net asset value at end of period | $20.36 | $21.21 | $22.84 | |||
Total return | (3.73 %)3 | (6.58 %) | (8.46 %)3 | |||
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Total expenses | 0.59 %4 | 0.59 %5 | 0.59 %4 | |||
Net investment income (loss) | 0.58 %4 | 0.68 % | 0.61 %4 | |||
Portfolio turnover rate6 | 6 %3 | 16 % | 15 %3 | |||
Net assets, end of period (x 1,000) | $16,391 | $14,108 | $10,622 |
* | Unaudited. |
1 | Commencement of operations. |
2 | Calculated based on the average shares outstanding during the period. |
3 | Not annualized. |
4 | Annualized. |
5 | Ratio includes less than 0.005% of non-routine proxy expenses. |
6 | Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
COMMON STOCKS 98.8% OF NET ASSETS | ||
Automobiles & Components 4.0% | ||
BorgWarner, Inc. | 6,418 | 259,095 |
Gentex Corp. | 11,185 | 363,960 |
Phinia, Inc. | 1,284 | 34,398 |
657,453 | ||
Banks 1.8% | ||
M&T Bank Corp. | 2,310 | 292,100 |
Capital Goods 15.3% | ||
Generac Holdings, Inc. * | 2,907 | 316,747 |
Kennametal, Inc. | 11,467 | 285,299 |
Masco Corp. | 3,292 | 175,957 |
nVent Electric plc | 7,581 | 401,717 |
Resideo Technologies, Inc. * | 22,741 | 359,308 |
Sensata Technologies Holding plc | 7,234 | 273,590 |
Simpson Manufacturing Co., Inc. | 1,533 | 229,659 |
Snap-on, Inc. | 1,005 | 256,335 |
The Middleby Corp. * | 1,653 | 211,584 |
2,510,196 | ||
Commercial & Professional Services 7.5% | ||
Brady Corp., Class A | 3,220 | 176,842 |
Dun & Bradstreet Holdings, Inc. | 24,694 | 246,693 |
Korn Ferry | 2,742 | 130,081 |
Stericycle, Inc. * | 4,186 | 187,156 |
The Brink's Co. | 6,740 | 489,594 |
1,230,366 | ||
Consumer Discretionary Distribution & Retail 2.7% | ||
CarMax, Inc. * | 2,714 | 191,961 |
Leslie's, Inc. * | 43,036 | 243,584 |
435,545 | ||
Consumer Durables & Apparel 2.8% | ||
Mattel, Inc. * | 16,544 | 364,464 |
Mohawk Industries, Inc. * | 1,073 | 92,074 |
456,538 | ||
Consumer Services 12.4% | ||
ADT, Inc. | 36,618 | 219,708 |
Adtalem Global Education, Inc. * | 4,382 | 187,768 |
Lindblad Expeditions Holdings, Inc. * | 63,974 | 460,613 |
Norwegian Cruise Line Holdings Ltd. * | 38,383 | 632,552 |
OneSpaWorld Holdings Ltd. * | 47,972 | 538,246 |
2,038,887 | ||
SECURITY | NUMBER OF SHARES | VALUE ($) |
Financial Services 10.6% | ||
Fiserv, Inc. * | 4,041 | 456,472 |
KKR & Co., Inc. | 6,440 | 396,704 |
Lazard Ltd., Class A | 7,706 | 238,963 |
Northern Trust Corp. | 4,486 | 311,687 |
The Goldman Sachs Group, Inc. | 1,055 | 341,366 |
1,745,192 | ||
Food, Beverage & Tobacco 0.6% | ||
The J.M. Smucker Co. | 766 | 94,149 |
Health Care Equipment & Services 5.6% | ||
Envista Holdings Corp. * | 6,052 | 168,730 |
Laboratory Corp. of America Holdings | 1,179 | 237,038 |
Patterson Cos., Inc. | 7,853 | 232,763 |
Zimmer Biomet Holdings, Inc. | 2,480 | 278,305 |
916,836 | ||
Household & Personal Products 1.0% | ||
Reynolds Consumer Products, Inc. | 6,243 | 160,008 |
Insurance 4.5% | ||
Aflac, Inc. | 3,147 | 241,532 |
First American Financial Corp. | 5,313 | 300,131 |
The Progressive Corp. | 1,416 | 197,249 |
738,912 | ||
Materials 1.4% | ||
Axalta Coating Systems Ltd. * | 8,310 | 223,539 |
Media & Entertainment 8.1% | ||
Madison Square Garden Entertainment Corp. * | 6,965 | 229,218 |
Madison Square Garden Sports Corp. | 1,288 | 227,074 |
Manchester United Plc, Class A * | 18,183 | 359,842 |
Paramount Global, Class B | 6,033 | 77,826 |
Sphere Entertainment Co. * | 5,276 | 196,056 |
The Interpublic Group of Cos., Inc. | 8,247 | 236,359 |
1,326,375 | ||
Pharmaceuticals, Biotechnology & Life Sciences 5.5% | ||
Bio-Rad Laboratories, Inc., Class A * | 478 | 171,339 |
Charles River Laboratories International, Inc. * | 1,785 | 349,825 |
Fortrea Holdings, Inc. * | 1,171 | 33,479 |
Prestige Consumer Healthcare, Inc. * | 6,054 | 346,228 |
900,871 | ||
SECURITY | NUMBER OF SHARES | VALUE ($) |
Real Estate Management & Development 3.1% | ||
CBRE Group, Inc., Class A * | 3,381 | 249,721 |
Jones Lang LaSalle, Inc. * | 1,803 | 254,547 |
504,268 | ||
Software & Services 3.1% | ||
Fair Isaac Corp. * | 330 | 286,615 |
The Hackett Group, Inc. | 9,775 | 230,592 |
517,207 | ||
Technology Hardware & Equipment 8.8% | ||
Keysight Technologies, Inc. * | 1,927 | 254,961 |
Knowles Corp. * | 18,106 | 268,150 |
Littelfuse, Inc. | 1,265 | 312,860 |
Motorola Solutions, Inc. | 813 | 221,331 |
Zebra Technologies Corp., Class A * | 1,629 | 385,308 |
1,442,610 | ||
Total Common Stocks (Cost $17,903,632) | 16,191,052 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
SHORT-TERM INVESTMENTS 1.3% OF NET ASSETS | ||
Money Market Funds 1.3% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.29% (a) | 224,421 | 224,421 |
Total Short-Term Investments (Cost $224,421) | 224,421 | |
Total Investments in Securities (Cost $18,128,053) | 16,415,473 |
* | Non-income producing security. |
(a) | The rate shown is the annualized 7-day yield. |
DESCRIPTION | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL |
Assets | ||||
Common Stocks1 | $16,191,052 | $— | $— | $16,191,052 |
Short-Term Investments1 | 224,421 | — | — | 224,421 |
Total | $16,415,473 | $— | $— | $16,415,473 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at value - unaffiliated (cost $18,128,053) | $16,415,473 | |
Receivables: | ||
Fund shares sold | 407,234 | |
Investments sold | 86,405 | |
Dividends | + | 8,685 |
Total assets | 16,917,797 | |
Liabilities | ||
Payables: | ||
Investments bought | 518,515 | |
Management fees | + | 8,225 |
Total liabilities | 526,740 | |
Net assets | $16,391,057 | |
Net Assets by Source | ||
Capital received from investors | $18,350,108 | |
Total distributable loss | + | (1,959,051 ) |
Net assets | $16,391,057 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$16,391,057 | 805,000 | $20.36 | ||
For the period April 1, 2023 through September 30, 2023; unaudited | ||
Investment Income | ||
Dividends received from securities - unaffiliated | $90,428 | |
Expenses | ||
Management fees | 45,610 | |
Total expenses | – | 45,610 |
Net investment income | 44,818 | |
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized losses on sales of securities - unaffiliated | (130,264 ) | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | + | (622,484 ) |
Net realized and unrealized losses | (752,748 ) | |
Decrease in net assets resulting from operations | ($707,930 ) |
OPERATIONS | |||
4/1/23-9/30/23 | 4/1/22-3/31/23 | ||
Net investment income | $44,818 | $80,735 | |
Net realized losses | (130,264 ) | (107,174 ) | |
Net change in unrealized appreciation (depreciation) | + | (622,484 ) | (561,126 ) |
Decrease in net assets from operations | ($707,930 ) | ($587,565 ) | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($46,073 ) | ($71,467 ) |
TRANSACTIONS IN FUND SHARES | |||||
4/1/23-9/30/23 | 4/1/22-3/31/23 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 140,000 | $3,037,307 | 215,000 | $4,464,559 | |
Shares redeemed | + | — | — | (15,000 ) | (319,446 ) |
Net transactions in fund shares | 140,000 | $3,037,307 | 200,000 | $4,145,113 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
4/1/23-9/30/23 | 4/1/22-3/31/23 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 665,000 | $14,107,753 | 465,000 | $10,621,672 | |
Total increase | + | 140,000 | 2,283,304 | 200,000 | 3,486,081 |
End of period | 805,000 | $16,391,057 | 665,000 | $14,107,753 |
SCHWAB STRATEGIC TRUST (ORGANIZED JANUARY 27, 2009) | |
Schwab Ariel ESG ETF | Schwab U.S. TIPS ETF |
Schwab U.S. REIT ETF | Schwab Short-Term U.S. Treasury ETF |
Schwab 1000 Index® ETF | Schwab Intermediate-Term U.S. Treasury ETF |
Schwab U.S. Broad Market ETF | Schwab Long-Term U.S. Treasury ETF |
Schwab U.S. Large-Cap ETF | Schwab U.S. Aggregate Bond ETF |
Schwab U.S. Large-Cap Growth ETF | Schwab 1-5 Year Corporate Bond ETF |
Schwab U.S. Large-Cap Value ETF | Schwab 5-10 Year Corporate Bond ETF |
Schwab U.S. Mid-Cap ETF | Schwab Fundamental U.S. Broad Market Index ETF |
Schwab U.S. Small-Cap ETF | Schwab Fundamental U.S. Large Company Index ETF |
Schwab U.S. Dividend Equity ETF | Schwab Fundamental U.S. Small Company Index ETF |
Schwab International Dividend Equity ETF | Schwab Fundamental International Large Company Index ETF |
Schwab International Equity ETF | Schwab Fundamental International Small Company Index ETF |
Schwab International Small-Cap Equity ETF | Schwab Fundamental Emerging Markets Large Company Index ETF |
Schwab Emerging Markets Equity ETF | Schwab Crypto Thematic ETF |
Schwab Municipal Bond ETF | Schwab High Yield Bond ETF |
2. Significant Accounting Policies:
3. Risk Factors:
4. Affiliates and Affiliated Transactions:
6. Board of Trustees:
7. Borrowing from Banks:
8. Purchases and Sales of Investment Securities:
PURCHASES OF SECURITIES | SALES OF SECURITIES |
$1,369,095 | $974,273 |
9. In-Kind Transactions:
IN-KIND PURCHASES OF SECURITIES | IN-KIND SALES OF SECURITIES |
$2,743,376 | $0 |
10. Federal Income Taxes:
TAX COST | GROSS UNREALIZED APPRECIATION | GROSS UNREALIZED DEPRECIATION | NET UNREALIZED APPRECIATION (DEPRECIATION) | |
$18,196,153 | $865,390 | ($2,646,070 ) | ($1,780,680 ) | |
PRIOR FISCAL YEAR END DISTRIBUTIONS | |
ORDINARY INCOME | |
$71,467 |
11. Subsequent Events:
Independent Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Michael J. Beer 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | 106 | Director (2016 – 2019), Principal Funds, Inc. |
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | Retired/Private Investor. | 106 | None |
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. | 106 | None |
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Private Investor. | 106 | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 106 | None |
Independent Trustees (continued) | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Consultant (2008 – present), Patmore Management Consulting (management consulting). | 106 | None |
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 106 | None |
Interested Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Walter W. Bettinger II2 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Co-Chairman of the Board (July 2022 – present), Director and Chief Executive Officer (Oct. 2008 – present) and President (Feb. 2007 – Oct. 2021), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – Oct. 2021) and Director (May 2008 – Oct. 2021), Charles Schwab & Co., Inc.; Co-Chairman of the Board (July 2022 – present) and Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Co-Chairman of the Board (July 2022 – present) and Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Co-Chairman of the Board (July 2022 – present) and Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present), Chief Executive Officer (Aug. 2017 – present) and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.; Manager (Sept. 2023 – present), TD Ameritrade Holding LLC; Director (Oct. 2020 – Aug. 2023), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | 106 | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | 106 | None |
Officers of the Trust | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Omar Aguilar 1970 Chief Executive Officer, President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Chief Executive Officer (Jan. 2022 – present), President (Oct. 2023 – present), (Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Sept. 2023 – present), President (Oct. 2023 – present), Chief Investment Officer (June 2011 – present) and Vice President (June 2011 – Sept. 2023), Schwab Funds, Laudus Trust and Schwab ETFs. |
Mark Fischer 1970 Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present), Chief Operating Officer (Oct. 2023 – present), Managing Director (Mar. 2023 – present) and Vice President (Oct. 2013 – Mar. 2023), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Vice President (Mar. 2022 – Mar. 2023) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (Apr. 2022 – May 2022), Charles Schwab & Co., Inc. |
Patrick Cassidy 1964 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Chief Investment Officer (Oct. 2023 – present) and Vice President (Feb. 2018 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Chief Investment Officer (Oct. 2023 – present), and Senior Vice President (Oct. 2012 – Mar. 2023), Charles Schwab Investment Management, Inc. |
William P. McMahon, Jr. 1972 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Managing Director (Mar. 2023 – present), Senior Vice President (Jan. 2020 – Mar. 2023) and Chief Investment Officer (Jan. 2020 – present) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009) | Chief Legal Officer (Mar. 2022 – present), Managing Director (Mar. 2023 – present) and Vice President (Sept. 2005 – Mar. 2023), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (Aug. 2005 – May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President (Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021), Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs. |
Schwab ETFs
Index ETF
Printed on recycled paper.
Total Returns for the 6 Months Ended September 30, 2023 | |
Schwab Crypto Thematic ETF (Ticker Symbol: STCE) | |
Market Price Return1 | -3.33% |
NAV Return1 | -3.24% 2 |
Schwab Crypto Thematic Index® (Net)3 | -3.25% |
MSCI ACWI Index (Net)3 | 2.56% |
ETF Category: Morningstar Digital Assets4 | -5.95% |
Performance Details | pages 4-5 |
![]() | Christopher Bliss, CFA, Managing Director and Head of Passive Equity Strategies for Schwab Asset Management, is responsible for overseeing the investment process and portfolio management of investment strategies for passive equity Schwab Funds and Schwab ETFs, and Schwab Personalized Indexing™ separately managed accounts. Before joining Schwab in 2016, Mr. Bliss spent 12 years at BlackRock (formerly Barclays Global Investors) managing and leading institutional index teams, most recently as a managing director and the head of the Americas institutional index team. In this role, Mr. Bliss was responsible for overseeing a team of portfolio managers managing domestic, developed international and emerging markets index strategies. Prior to BlackRock, he worked as an equity analyst and portfolio manager for Harris Bretall and before that, as a research analyst for JP Morgan. |
![]() | Joselle Duncan, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the fund. Prior to joining Schwab in 2022, Ms. Duncan worked at BlackRock, Inc. for over 20 years as a vice president and portfolio manager focused on international ETFs. Before that, she held several positions at Blackrock (formerly Barclays Global Investors) including portfolio manager for institutional and mutual funds, securities lending trader, and securities lending product specialist. |
![]() | Jiwei Gu, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the fund. Ms. Gu joined the portfolio management team as an associate portfolio manager in 2018. Prior to joining Schwab, she spent four years at CoBank, most recently as an enterprise risk analyst performing bank-level loan portfolio credit risk analysis, data analytics, and risk management methodology research. Before that, Ms. Gu worked in commercial credit underwriting and capital markets supporting lending activities. |
![]() | David Rios, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the fund. Prior to this role, Mr. Rios was an associate portfolio manager on the equity index strategies team for four years. His first role with Schwab Asset Management was as a trade operations specialist. Prior to joining Schwab in 2008, Mr. Rios was a senior fund accountant at Investors Bank & Trust (subsequently acquired by State Street Corporation). |
Fund and Inception Date | 6 Months | 1 Year | Since Inception* |
Fund: Schwab Crypto Thematic ETF (8/4/22) | |||
Market Price Return2 | -3.33% | -1.31% | -18.73% |
NAV Return2 | -3.24% 3 | -1.31% | -18.91% |
Schwab Crypto Thematic Index® (Net)4 | -3.25% | -1.61% | -19.12% |
MSCI ACWI Index (Net)4 | 2.56% | 20.80% | 4.30% |
ETF Category: Morningstar Digital Assets5 | -5.95% | 1.43% | N/A |
Fund Expense Ratio6: 0.30% |
Number of Holdings | 36 |
Weighted Average Market Cap (millions) | $33,655 |
Price/Earnings Ratio (P/E) | 18.7 |
Price/Book Ratio (P/B) | 1.8 |
Portfolio Turnover Rate | 28% 1,2 |
![](https://capedge.com/proxy/N-CSRS/0001193125-23-286328/g401939imgf2319c2b6.jpg)
![](https://capedge.com/proxy/N-CSRS/0001193125-23-286328/g401939img513a37947.jpg)
![](https://capedge.com/proxy/N-CSRS/0001193125-23-286328/g401939img72b534dc8.jpg)
EXPENSE RATIO (ANNUALIZED) 1 | BEGINNING ACCOUNT VALUE AT 4/1/23 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 9/30/23 | EXPENSES PAID DURING PERIOD 4/1/23-9/30/23 2 | |
Schwab Crypto Thematic ETF | ||||
Actual Return | 0.30% | $1,000.00 | $967.60 | $1.48 |
Hypothetical 5% Return | 0.30% | $1,000.00 | $1,023.50 | $1.52 |
1 | Based on the most recent six-month expense ratio. |
2 | Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 183 days in the period, and divided by the 366 days in the fiscal year. |
4/1/23– 9/30/23* | 8/4/221– 3/31/23 | |||||
Per-Share Data | ||||||
Net asset value at beginning of period | $20.02 | $25.00 | ||||
Income (loss) from investment operations: | ||||||
Net investment income (loss)2 | 0.05 | 0.20 | ||||
Net realized and unrealized gains (losses) | (0.72 ) | (4.96 ) | ||||
Total from investment operations | (0.67 ) | (4.76 ) | ||||
Less distributions: | ||||||
Distributions from net investment income | (0.02 ) | (0.22 ) | ||||
Net asset value at end of period | $19.33 | $20.02 | ||||
Total return | (3.34 %)3 | (18.85 %)3 | ||||
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Total expenses | 0.30 %4 | 0.30 %4 | ||||
Net investment income (loss) | 0.50 %4 | 1.55 %4 | ||||
Portfolio turnover rate5 | 28 %3 | 36 %3 | ||||
Net assets, end of period (x 1,000) | $10,630 | $11,012 |
* | Unaudited. |
1 | Commencement of operations. |
2 | Calculated based on the average shares outstanding during the period. |
3 | Not annualized. |
4 | Annualized. |
5 | Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
SECURITY | NUMBER OF SHARES | VALUE ($) |
COMMON STOCKS 99.8% OF NET ASSETS | ||
Brazil 3.3% | ||
XP, Inc., Class A | 15,227 | 350,982 |
Canada 8.4% | ||
Bitfarms Ltd. * | 251,629 | 269,243 |
Hut 8 Mining Corp. * | 214,765 | 418,792 |
Nuvei Corp. | 13,712 | 205,680 |
893,715 | ||
Japan 6.5% | ||
GMO internet group, Inc. | 5,564 | 86,317 |
Internet Initiative Japan, Inc. | 9,761 | 158,132 |
Monex Group, Inc. | 58,890 | 220,208 |
SBI Holdings, Inc. | 10,786 | 227,538 |
692,195 | ||
Norway 1.7% | ||
Opera Ltd. | 15,652 | 176,398 |
United Kingdom 1.3% | ||
IG Group Holdings plc | 17,779 | 139,641 |
United States 78.6% | ||
AMC Entertainment Holdings, Inc., Class A * | 13,602 | 108,680 |
Axos Financial, Inc. * | 4,950 | 187,407 |
BGC Group, Inc., Class A | 35,927 | 189,695 |
Block, Inc. * | 10,160 | 449,682 |
Cboe Global Markets, Inc. | 2,431 | 379,746 |
Cipher Mining, Inc. * | 40,910 | 95,320 |
Cleanspark, Inc. * | 150,579 | 573,706 |
CME Group, Inc. | 1,135 | 227,250 |
SECURITY | NUMBER OF SHARES | VALUE ($) |
Coinbase Global, Inc., Class A * | 12,128 | 910,570 |
Customers Bancorp, Inc. * | 6,163 | 212,315 |
GameStop Corp., Class A * | 8,650 | 142,379 |
Interactive Brokers Group, Inc., Class A | 3,944 | 341,393 |
Intercontinental Exchange, Inc. | 1,843 | 202,767 |
Marathon Digital Holdings, Inc. * | 83,215 | 707,327 |
MicroStrategy, Inc., Class A * | 2,593 | 851,230 |
NCR Corp. * | 7,201 | 194,211 |
NVIDIA Corp. | 509 | 221,410 |
Overstock.com, Inc. * | 9,353 | 147,964 |
PayPal Holdings, Inc. * | 7,978 | 466,394 |
Riot Platforms, Inc. * | 71,892 | 670,752 |
Robinhood Markets, Inc., Class A * | 34,634 | 339,760 |
SoFi Technologies, Inc. * | 35,848 | 286,426 |
StoneX Group, Inc. * | 1,333 | 129,194 |
Virtu Financial, Inc., Class A | 11,256 | 194,391 |
WisdomTree, Inc. | 18,407 | 128,849 |
8,358,818 | ||
Total Common Stocks (Cost $10,805,129) | 10,611,749 |
SHORT-TERM INVESTMENTS 0.1% OF NET ASSETS | ||
Money Market Funds 0.1% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.29% (a) | 6,419 | 6,419 |
Total Short-Term Investments (Cost $6,419) | 6,419 | |
Total Investments in Securities (Cost $10,811,548) | 10,618,168 |
* | Non-income producing security. |
(a) | The rate shown is the annualized 7-day yield. |
DESCRIPTION | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL |
Assets | ||||
Common Stocks1 | $10,611,749 | $— | $— | $10,611,749 |
Short-Term Investments1 | 6,419 | — | — | 6,419 |
Total | $10,618,168 | $— | $— | $10,618,168 |
1 | As categorized in the Portfolio Holdings. |
Assets | ||
Investments in securities, at value - unaffiliated (cost $10,811,548) | $10,618,168 | |
Cash | 9,475 | |
Foreign currency, at value (cost $1,275) | 1,255 | |
Receivables: | ||
Dividends | 12,939 | |
Foreign tax reclaims | + | 308 |
Total assets | 10,642,145 | |
Liabilities | ||
Payables: | ||
Investments bought | 9,475 | |
Management fees | + | 2,899 |
Total liabilities | 12,374 | |
Net assets | $10,629,771 | |
Net Assets by Source | ||
Capital received from investors | $12,590,525 | |
Total distributable loss | + | (1,960,754 ) |
Net assets | $10,629,771 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares Outstanding | = | NAV |
$10,629,771 | 550,000 | $19.33 | ||
For the period April 1, 2023 through September 30, 2023; unaudited | ||
Investment Income | ||
Dividends received from securities - unaffiliated (net of foreign withholding tax of $387) | $47,311 | |
Expenses | ||
Management fees | 17,761 | |
Total expenses | – | 17,761 |
Net investment income | 29,550 | |
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized losses on sales of securities - unaffiliated | (605,469 ) | |
Net realized losses on foreign currency transactions | + | (1,054 ) |
Net realized losses | (606,523 ) | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | 207,634 | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | 21 |
Net change in unrealized appreciation (depreciation) | + | 207,655 |
Net realized and unrealized losses | (398,868 ) | |
Decrease in net assets resulting from operations | ($369,318 ) |
OPERATIONS | |||
4/1/23-9/30/23 | 8/4/221-3/31/23 | ||
Net investment income | $29,550 | $77,690 | |
Net realized losses | (606,523 ) | (1,165,717 ) | |
Net change in unrealized appreciation (depreciation) | + | 207,655 | (401,104 ) |
Decrease in net assets from operations | ($369,318 ) | ($1,489,131 ) | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($13,145 ) | ($89,160 ) |
TRANSACTIONS IN FUND SHARES | |||||
4/1/23-9/30/23 | 8/4/221-3/31/23 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | — | $— | 550,000 | $12,590,525 | |
Net transactions in fund shares | — | $— | 550,000 | $12,590,525 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
4/1/23-9/30/23 | 8/4/221-3/31/23 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 550,000 | $11,012,234 | — | $— | |
Total increase (decrease) | + | — | (382,463 ) | 550,000 | 11,012,234 |
End of period | 550,000 | $10,629,771 | 550,000 | $11,012,234 |
1 | Commencement of operations. |
SCHWAB STRATEGIC TRUST (ORGANIZED JANUARY 27, 2009) | |
Schwab Crypto Thematic ETF | Schwab U.S. TIPS ETF |
Schwab U.S. REIT ETF | Schwab Short-Term U.S. Treasury ETF |
Schwab 1000 Index® ETF | Schwab Intermediate-Term U.S. Treasury ETF |
Schwab U.S. Broad Market ETF | Schwab Long-Term U.S. Treasury ETF |
Schwab U.S. Large-Cap ETF | Schwab U.S. Aggregate Bond ETF |
Schwab U.S. Large-Cap Growth ETF | Schwab 1-5 Year Corporate Bond ETF |
Schwab U.S. Large-Cap Value ETF | Schwab 5-10Year Corporate Bond ETF |
Schwab U.S. Mid-Cap ETF | Schwab Fundamental U.S. Broad Market Index ETF |
Schwab U.S. Small-Cap ETF | Schwab Fundamental U.S. Large Company Index ETF |
Schwab U.S. Dividend Equity ETF | Schwab Fundamental U.S. Small Company Index ETF |
Schwab International Dividend Equity ETF | Schwab Fundamental International Large Company Index ETF |
Schwab International Equity ETF | Schwab Fundamental International Small Company Index ETF |
Schwab International Small-Cap Equity ETF | Schwab Fundamental Emerging Markets Large Company Index ETF |
Schwab Emerging Markets Equity ETF | Schwab Ariel ESG ETF |
Schwab Municipal Bond ETF | Schwab High Yield Bond ETF |
2. Significant Accounting Policies:
3. Risk Factors:
4. Affiliates and Affiliated Transactions:
5. Other Service Providers:
6. Board of Trustees:
7. Borrowing from Banks:
8. Purchases and Sales of Investment Securities:
PURCHASES OF SECURITIES | SALES OF SECURITIES |
$3,299,934 | $3,268,882 |
10. Federal Income Taxes:
TAX COST | GROSS UNREALIZED APPRECIATION | GROSS UNREALIZED DEPRECIATION | NET UNREALIZED APPRECIATION (DEPRECIATION) | |
$10,890,572 | $891,200 | ($1,163,604 ) | ($272,404 ) | |
PRIOR FISCAL YEAR END DISTRIBUTIONS | |
ORDINARY INCOME | |
$89,160 |
11. Subsequent Events:
Independent Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Michael J. Beer 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | 106 | Director (2016 – 2019), Principal Funds, Inc. |
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) | Retired/Private Investor. | 106 | None |
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Retired. | 106 | None |
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) | Private Investor. | 106 | Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) | Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 106 | None |
Independent Trustees (continued) | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) | Consultant (2008 – present), Patmore Management Consulting (management consulting). | 106 | None |
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 106 | None |
Interested Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) | Principal Occupations During the Past Five Years | Number of Portfolios in Fund Complex Overseen by the Trustee | Other Directorships |
Walter W. Bettinger II2 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) | Co-Chairman of the Board (July 2022 – present), Director and Chief Executive Officer (Oct. 2008 – present) and President (Feb. 2007 – Oct. 2021), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – Oct. 2021) and Director (May 2008 – Oct. 2021), Charles Schwab & Co., Inc.; Co-Chairman of the Board (July 2022 – present) and Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Co-Chairman of the Board (July 2022 – present) and Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Co-Chairman of the Board (July 2022 – present) and Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present), Chief Executive Officer (Aug. 2017 – present) and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.; Manager (Sept. 2023 – present), TD Ameritrade Holding LLC; Director (Oct. 2020 – Aug. 2023), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | 106 | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | 106 | None |
Officers of the Trust | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Omar Aguilar 1970 Chief Executive Officer, President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) | Chief Executive Officer (Jan. 2022 – present), President (Oct. 2023 – present), (Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Sept. 2023 – present), President (Oct. 2023 – present), Chief Investment Officer (June 2011 – present) and Vice President (June 2011 – Sept. 2023), Schwab Funds, Laudus Trust and Schwab ETFs. |
Mark Fischer 1970 Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present), Chief Operating Officer (Oct. 2023 – present), Managing Director (Mar. 2023 – present) and Vice President (Oct. 2013 – Mar. 2023), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Vice President (Mar. 2022 – Mar. 2023) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (Apr. 2022 – May 2022), Charles Schwab & Co., Inc. |
Patrick Cassidy 1964 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) | Chief Investment Officer (Oct. 2023 – present) and Vice President (Feb. 2018 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present), Chief Investment Officer (Oct. 2023 – present), and Senior Vice President (Oct. 2012 – Mar. 2023), Charles Schwab Investment Management, Inc. |
William P. McMahon, Jr. 1972 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) | Managing Director (Mar. 2023 – present), Senior Vice President (Jan. 2020 – Mar. 2023) and Chief Investment Officer (Jan. 2020 – present) Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009) | Chief Legal Officer (Mar. 2022 – present), Managing Director (Mar. 2023 – present) and Vice President (Sept. 2005 – Mar. 2023), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (Aug. 2005 – May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President (Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021), Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs. |
Schwab ETFs
Index ETF
Printed on recycled paper.
Item 2: Code of Ethics.
Not applicable to this semi-annual report.
Item 3: Audit Committee Financial Expert.
Not applicable to this semi-annual report.
Item 4: Principal Accountant Fees and Services.
Not applicable to this semi-annual report.
Item 5: Audit Committee of Listed Registrants.
Not applicable to this semi-annual report.
Item 6: Schedule of Investments.
The schedules of investments are included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11: Controls and Procedures.
(a) | Based on their evaluation of Registrant’s disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant’s Chief Executive Officer, Omar Aguilar and Registrant’s Chief Financial Officer, Dana Smith, have concluded that Registrant’s disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant’s officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above. |
(b) | During the period covered by this report, there have been no changes in Registrant’s internal control over financial reporting that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant’s internal control over financial reporting. |
Item 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13: Exhibits.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Schwab Strategic Trust - Schwab Ariel ESG ETF and Schwab Crypto Thematic ETF
By: | /s/ Omar Aguilar | |
Omar Aguilar Chief Executive Officer | ||
Date: | November 16, 2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Omar Aguilar | |
Omar Aguilar Chief Executive Officer | ||
Date: | November 16, 2023 | |
By: | /s/ Dana Smith | |
Dana Smith Chief Financial Officer | ||
Date: | November 16, 2023 |